These are some of the compliance-related stories that recently caught my attention.
As the elections approach nationwide, advisers to private investment funds with current or prospective state or local government entity investors should be mindful of political activities by their personnel which could raise concerns under existing pay-to-play regulations. Given the magnitude of governmental plan investors in private funds, in addition to a potential loss of revenue, even the disclosure of a pay-to-play inquiry could result in significant reputational implications with current and prospective private fund investors. [More…]
Compliance Alert: Enforcement hammer falls on real estate by Kim Nemirow and Amanda Raad in the FCPA Blog
Regulators charged with enforcing anti-corruption, anti-money laundering, and economic sanctions laws and regulations have turned new attention to the real estate industry, and investigations and enforcement efforts span the globe.
Over recent years, U.S. and UK authorities have investigated real estate investors and their employees for allegedly making payments to government officials in order to construct and sell properties, as well as the conduct of management companies and the use of third parties to pay bribes, launder money, or evade economic sanctions. [More…]
Introduction to Blockchain Interview on Its impact on Practice and Firms by Ron Friedmann in Prism Legal
It is novel ledger technology that allows for the immutable recordation, transfer, settlement and audit of any currency or asset that can be “tokenized” – all in a decentralized environment that does not require the participants to trust each other. The innovation is in the decentralization, which tips our traditional thinking upside down because there is no longer a need for one party to be in charge or grant or deny access to a system. Blockchain technology is built on open protocols and often open source software. Blockchain technology also is new platform technology that is enabling an entirely new batch of “smart” transactions in capital markets, insurance, trade finance, supply chain management and smart cities. [More…]
The SEC and Whistleblowers: A Spotlight on Severance Agreements by John F. Savarese, Jeannemarie O’Brien, Wayne M. Carlin, and David B. Anders in NYU Law’s Program on Corporate Compliance and Enforcement
In the space of one week, the SEC brought two enforcement actions that reiterate its focus on protecting the rights of whistleblowers. In each case, companies attempted to remove the financial incentives for departing employees to submit whistleblower reports to the SEC. The result instead was a pair of administrative orders (on a neither admit nor deny basis) finding that each company violated SEC Rule 21F-17, which prohibits any person from taking any action to impede a whistleblower from communicating with the SEC about possible securities law violations. In the Matter of BlueLinx Holdings Inc. (August 10, 2016); In the Matter of Health Net, Inc. (August 16, 2016). [More…]
The Things You Learn at Strip Clubs… by Matt Kelly in Radical Compliance
According to an article in the New Orleans Times-Picayune, the Louisiana Department of Alcohol and Tobacco Control wants to launch a voluntary program with bar owners in the French Quarter to reduce a variety of violations, from liquor law abuses to human trafficking. Part of that program would be annual training for bar employees so they can avoid infractions in the first place—and yes, part of it would send mystery shoppers into the strip clubs to see what’s really happening inside. [More…]
The SEC Wants You to Know that It Intends to Protect Whistleblowers’ Rights by Kevin LaCroix in the D&O Diary
The SEC has long made it clear that it intends to protect whistleblowers and to suppress activities it believes will have the effect of discouraging whistleblower activity. The agency recently launched enforcement actions against companies that had incorporated various waivers in employee severance agreements that discouraged employees from reporting possible securities law violations to the SEC. The agency’s actions shows that the agency is prepared to actively target corporate actions the agency believe may suppress the whistleblowing process. [More…]